Double the insolvency risk in arts and entertainment highlights need for sector specific support

Figures from the Office for National Statistics (ONS) have revealed the arts and recreation sectors are still suffering from the effects of the pandemic.

More than double the number of businesses in the arts and recreation industry are reporting a severe to moderate risk of insolvency compared to all industries.

Fortnightly figures from the ONS showed that 23% of the sector which includes theatres and venues are reporting the risk compared to 11% across the wider economy.

The numbers cover nearly 6000 businesses and relate to the period 27 July to 9 August.

Other key findings include:

• Only 63% of the arts, entertainment and recreation industry is trading compared to other industries where 90% are trading.
• Over three quarters of the businesses that are trading (78%) reported that their turnover had decreased
• Nearly half of the businesses (41%) reported that turnover had decreased by more than 50% apart from accommodation and food services which 27% of its business reported the same decline no other industry reported percentages of higher than 20% for this category.
• The arts, entertainment and recreation sector had the largest proportion of the workforce furloughed, at 51%, compared with 13% across all industries

Head of Bectu Philippa Childs said: “These findings will come as no surprise to the vast majority of people working in these industries.

“Many organisations are unable to open and sell tickets at full capacity and are also being asked to contribute to the furlough scheme. These are a toxic mix of challenges and leading to significant numbers of people facing redundancy.

“This data is more evidence to support our calls that distribution of the arts recovery package must be sped up. As well as the current income support schemes being extended until the sector is able to function in a viable way again.

“Many freelancers working in this part of the economy have not received any government help during the crisis. While the work of philanthropists such as Sam Mendes’ and the Theatre Artists Fund should be applauded this situation can’t continue.

“The need for targeted support for all parts of the workforce is becoming clearer by the day. The government has adapted its position in many other significant policy areas and it’s still not too late to do so for arts and entertainment workers.”